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Indicators of Economic Development

In: Philosophy and Psychology

Submitted By pmutangiri
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Indicators of economic development

The intention of this document is to make the reader understand the concepts of economic indicators. The writer shall therefore briefly discuss indicators such as Gross National Product (GDP), Gross Domestic Product (GDP), Human Development Index (HDI) Gross National Income (GNI), and Infant Mortality Rate.

The term National Development is somewhat comprehensive, Aggarwal(2004). It has basically been defined as all aspects of an individual and the nation, cultural, democratic, emotional (social order), economic, intellectual (education material) ,moral, physical, spiritual and social.

Regan (2006) looked at development as human progress and quality of life. It’s important to point out that there may not be a single definition of development. Modern scholars have suggested the need for just a working definition and so propounded that development be viewed as a positive change in countries and communities. It (development) is therefore connected with social, economic and political advancement of people, Cornwell et al (2012).

There is also need to understand the concept of indicators. Cornwell et al (2010) explained that economic development indicators help to explain or illustrate development levels at any given country. These indicators have helped in the categorisation of countries as being poor, medium or rich-hence the idea of first world, second world and third world. Regan 2004 also pointed out that indicators are seen as measurement for a country’s wealth.

According to Regan (2006) GDP is an indicator which measures production of goods and services in a country. Note that it’s actual industrial production plus services offered by professionals, skilled workers and semi-skilled. One may use GDP to calculate the level of poverty in a country. For example a country with twenty million people producing a GDP of...

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